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Note 15 - Stock Based Compensation

9 Months Ended

Sep. 30, 2022

Share-Based Payment Arrangement [Text Block]

NOTE 15: STOCK BASED COMPENSATION

Stock Option and Incentive Plan

On March 24, 2020, the Board of Directors approved the adoption of the 2020 Stock Incentive Plan (2020 Plan) to provide for the grant of equity-based awards to employees, officers, non-employee directors and other key persons providing services to the Company. No awards may be granted under the 2020 Plan after the date that is 10 years from the date of stockholder approval. An aggregate of 3,000 shares were initially reserved for issuance in connection with awards granted under the 2020 Plan. On May 14, 2021, the stockholders approved an additional 15,000 shares available for issuance under the 2020 Plan. There are 8,256 options available for grant under the 2020 Plan as of September 30, 2022.

The Company granted options to purchase 30 and 3,879 shares of common stock, respectively, to employees during the three and nine months ended September 30, 2022. For the three and nine months ended September 30, 2021, the Company granted 175 and 3,819 options, respectively, to employees to purchase shares of common stock. The weighted average grant date fair value of options granted during the three and nine months ended September 30, 2022, was $0.92 and $0.99, respectively, and $2.74 and $2.56 for the same periods in 2021, respectively. There were no options exercised during the three and nine months ended September 30, 2022. There were 699 options exercised during the three and nine months ended September 30, 2021, at an average exercise price of $2.46.

The fair value of stock options granted for the three and nine months ended September 30, 2022 and 2021, was calculated using the Black-Scholes option-pricing model applying the following assumptions:

	Three Months Ended September 30,			Nine Months Ended September 30,
	2022			2022
Risk-free interest rate	2.74%	-	2.88%	1.86%	-	3.02%
Expected term (in years)	5.30	-	5.31	5.19	-	6.11
Dividend yield		-			-
Expected volatility		117%		114%	-	128%

	Three Months Ended September 30,			Nine Months Ended September 30,
	2021			2021
Risk-free interest rate	0.89%	-	0.98%	0.89%	-	1.08%
Expected term (in years)	5.54	-	6.12	5.31	-	6.17
Dividend yield		-			-
Expected volatility	123%	-	126%	122%	-	130%

Compensation costs associated with the Company’s stock options are recognized based on the grant-date fair values of these options, over the requisite service period, or vesting period. Accordingly, the Company recognized stock-based compensation expense, which was included in the following captions in the consolidated statements of operations:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
General and administrative	$	1,042	$	1,232	$	3,366	$	2,534
Research and development		624		562		1,877		1,114
Total stock compensation expense	$	1,666	$	1,794	$	5,243	$	3,648

Options issued and outstanding as of September 30, 2022 and related activities during the nine months ended September 30,2022 were as follows:

	Number of Underlying Shares			Weighted- Average Exercise Price Per Share		Weighted- Average Contractual Life Remaining in Years		Aggregate Intrinsic Value
Outstanding as of January 1, 2022		10,027		$	2.82		-
Granted		3,879			1.16		-		50,738
Exercised		-			-		-
Forfeited / cancelled		(200	)		0.91		-
Expired		-			-		-		-
Outstanding as of September 30, 2022		13,706			2.37		8.04	$	-
Exercisable as of September 30, 2022		9,354			2.65		7.52
Vested and expected to vest		13,706		$	2.37		8.04	$	-

On September 30, 2022, there were 4,352 unvested options outstanding, and the related unrecognized total compensation cost associated with these options was $5,606. This expense is expected to be recognized over a weighted-average period of 1.13 years.